Tds
This query is : Resolved
12 July 2012
WHETHER TDS IS DEDUCTED INCLUSIVE OF SERVICE TAX OR EXCLUSIVE OF SERVICE TAX UNDER SECTION 194H?
Sanjay Shaw
Sanjay Shaw
12 July 2012
TDS u/s 194H shall be deducted only on the amount of commission (excluding service tax).
TDS shall NOT be deducted on the service tax amount.
Please read circular 4/2008.
TDS shall NOT be deducted on the service tax amount.
Please read circular 4/2008.
CA Prashant Gupta
(Expert)
12 July 2012
Dear Sanjay. in this case Mr. Siddhartha is wrong. circular 4/2008 is applicable only on 194 I i.e. for rent
in 194 H there is no exemption. So you will deduct TDS on full amount inclusive of service tax
in 194 H there is no exemption. So you will deduct TDS on full amount inclusive of service tax
12 July 2012
The basis behind the circular is that Section 194I uses the word "INCOME" by way of rent.
The circular clarifies that since service tax does not partake the nature of income, TDS will NOT be deducted on service tax portion.
Applying the same basis, all Sections which use the word "INCOME" will be covered and TDS will not be deducted on service tax portion
The circular clarifies that since service tax does not partake the nature of income, TDS will NOT be deducted on service tax portion.
Applying the same basis, all Sections which use the word "INCOME" will be covered and TDS will not be deducted on service tax portion
CA Prashant Gupta
(Expert)
12 July 2012
cicular say
Service tax paid by the tenant doesnt partake the nature of income of the landlord. The landlord only acts as a collecting agency for Government for collection of service tax. Therefore it has been decided that tax deduction at source (TDS) under sections 194-I of Income-tax Act would be required to be made on the amount of rent paid/payable without including the service tax.
So when even circular say it is only for 194-I. Then how can you apply this all otehr sections
Service tax paid by the tenant doesnt partake the nature of income of the landlord. The landlord only acts as a collecting agency for Government for collection of service tax. Therefore it has been decided that tax deduction at source (TDS) under sections 194-I of Income-tax Act would be required to be made on the amount of rent paid/payable without including the service tax.
So when even circular say it is only for 194-I. Then how can you apply this all otehr sections
12 July 2012
In my opinion, TDS will NOT be deducted on service tax portion.
Other experts' views are solicited.
Other experts' views are solicited.
CA BHARATH KUMAR
(Expert)
12 July 2012
CA prashant Gupta Openion and answer right . becuase Tds deduct full amount of bill under sec 194H. inclusive of service tax . that is applicable on rent only
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